International Business Machines Corp.
(NYSE:IBM) on Tuesday released preliminary second-quarter results that fell short of its expectations, citing weaker-than-anticipated mainframe-related sales as customers shifted spending toward supply-constrained servers, storage, and memory infrastructure.
Following the announcement, the stock fell nearly 23%.
IBM Misses Expectations The company said it expects second-quarter revenue of $17.2 billion, up 1% from a year earlier but below the Wall Street consensus estimate of $17.86 billion.
Software revenue increased 5%, Consulting revenue was flat, or up 1% at constant currency, while Infrastructure revenue declined 7%.
